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Choosing the country where you establish your business is a critical decision that can define your company’s success. Dubai and the United States (USA) are popular destinations, but each offers unique advantages and challenges.
In this article, we will compare key aspects backed by figures and statistics to show you why the United States might be the best option for your business.
In Dubai, companies in free zones enjoy reduced or zero corporate taxes, but these exemptions are often limited to certain areas, restricting operational flexibility. According to PwC, operating in a Dubai free zone can cost over $25,000 USD annually, not including hidden costs.
In contrast, the United States offers greater tax flexibility. With various business structures like LLCs, you can optimize your taxes through deductions and credits. Tech Innovations LLC in Delaware reinvested more capital thanks to these advantages, something that would be more difficult in Dubai due to free zone restrictions.
While Dubai offers access to markets in the Middle East and Asia, its economy is highly tied to oil, and cultural barriers can hinder expansion into other sectors.
On the other hand, the United States is a gateway to global markets with a diversified economy and trade agreements that facilitate international expansion. Fashion Forward Inc. in New York rapidly expanded into Latin America, while its competitor in Dubai was limited by regional barriers.
In Dubai, laws can change quickly, creating uncertainty. According to The World Bank, Dubai ranks 16th in ease of doing business, but its legal system is less predictable compared to the USA, which ranks 6th.
In the United States, the legal system is stable and predictable, based on precedents that protect business rights. Innovatech Corp. chose the USA for this stability, avoiding the problems faced by its competitor in Dubai when unexpected regulations were implemented.
Access to financing in Dubai is limited and concentrated in sectors like oil. A study by Emirates NBD revealed that only 30% of startups in Dubai secure financing during their first five years.
On the other hand, the United States is the global epicenter of venture capital. In 2023, more than $130 billion was invested in startups in the USA, according to the NVCA. BioHealth Innovations in Silicon Valley secured millions of dollars in funding, something much more difficult to achieve in Dubai.
Despite investments in infrastructure, some areas of Dubai still lack the necessary support for certain sectors, especially outside key cities like Dubai. According to Oxford Economics, Dubai has well-developed infrastructure in key areas, but regional connections remain a challenge.
In contrast, the United States offers a complete and well-developed business infrastructure, including transportation, telecommunications, and an accessible network of suppliers. Global Logistics LLC, a European entrepreneur, established its logistics company in Texas, taking advantage of world-class transportation infrastructure and direct access to suppliers and customers across North America.
While Dubai presents attractive advantages for certain businesses, the United States stands out in terms of stability, accessibility, and growth opportunities. With a favorable tax environment, access to global markets, legal protection, abundant financing, and unmatched infrastructure, the USA offers an ideal environment for your business to thrive.
If you are ready to establish your company in an environment that maximizes your potential, our experts at Prodezk are here to help you every step of the way.
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